Voom Ipod??
If voom is going to be a delivery provider Voom can't compete being the accessory service, they have to be the core service. Although I love HD, I don't think HDNEWS satisfy my need for news, And there are many valuable channels on SD. Although I may not watch many, I can't call them bad. Any successful delivery company has to be broad in its offerings. Other wise it is too easily replaced. But if Voom can create enough Locks to the customer, then there are no other choices.
Some of you have hinted at the idea that Voom should offer it's package of exclusive, as a separate package. Is that so you can add those channels to other services that you now have? if so, that would be counter productive for Voom. Why should they encourage you to continue paying for Cable or other Satellite service from someone other than Voom.
This means voom would get only a small portion of your entertainment dollar. The most successful businesses try to get a bigger portion of your dollars in their category.
The exact reason for PAy per view, "instead of you going to blockhustler and renting a movie, why not allow us through our 'already paid for system', feed that movie to you. Allowing you the convenience of not upsetting your couch roots, and allowing us a cool $5.00 with no sweat." A Win Win for everyone.
A solely pay per view provider company would not be able to be profitable if is was required to provide the infrastructure to feed movies. It has to do it over already installed systems so that the revenue goes mostly to profit.
Not even considering the cost of providing the service. . . For each house Vooms cost is pretty constant. so to be profitable they need to increase use/revenue of that capital cost, as in the 3 boxes, dish, and technicians on premise. Not know the actual numbers, I'm just going to throw out that is costs $800 per house under the current offers. And if they offered their HD only package (assuming distributon costs are covered by increaased number of subs) how long would it take to recover the cost of the equipment at $20 bucks a month selling just their voom exclusives? over 3 years! then they start showing a profit on your house. If they get you for $80 a month, because you decide to give up E* and pay for the Vava package they recover in less than 1 year.
Of course voom has to pay licensing for the added premium channels, just as they do for the basic channels, so it is not all profit but what ever the cost and whatevert he margin, higher invoice prices for the same hard cost is what will make Voom successful. If you aren't charging enough to be profitable you can't make it up on volume.
If voom became just an accessory service, It would be expendible. If you are feeling a little short in cash this week, would you go without the meal or go without the dessert, at a restaurant? If you said dessert, that is only becasue you feel that dessert is novel, but when push comes to shove you'll give up dessert more often. How many successful "Premium desserts only" restaurants do you have in your neighborhood?
Voom has to provide enough diversity to allow most people to consider it "complete enough" for "Joe and Jane Single Source". And become the steak and potatoes of their entertainment needs. then of they add dessert, like pay perview, or "packages" of premium or specialized channels, they will be more profitable.
IF voom is no longer a service provide and becomes a service, then specialization is to it's advantage. Discovery is all of the quasi educational channels and MTV is all the music channels, and ESPN. . . Squash the competition allow no diversity, therefore no competition on contracts with Delivery Companies that diversify.
For those of you that are ready to mention Baskin and Robbins, Carvel, Coldstone or another Ice cream company to the "desserts only" question: First that's not a premium dessert. . . but Those are actually more like HBO and Cinemax, service providers that specialize in a certain type of product, and by offering through many easy to access locations, becomes readily available to the public. Just like HBO is on most, if not all, Cable and non-cable TV providers. You don't buy because of the restaurant you buy because of the product and because it is convenient.